Stock Market Risk

Stock market risk is the risk that an investor assumes when investing in securities that trade on the stock market and that are issued by public corporations (companies that have many shareholders). Stock market risk can come in many forms. Rising interest rates and a rising inflation rate can increase stock market risk. A recession and economic contraction, where corporations will make less money, is another stock market risk. And, of course, there is individual public corporation stock market risk, where the individual company in question is not operating in good faith (an example would be Enron).


This morning, the news is full of talk about Greece. This weekend, the government there introduced capital controls in what’s looking more and more like a country on the brink of financial collapse. Greece leaving the eurozone is of importance…

This market is on steroids. The Federal Reserve is the dealer and the market participants are the buyers. This is a particularly dangerous stock market risk. So it’s not a surprise to see stocks go up and up without any…

I will be first to say that this is a difficult market to play, and it’s certainly full of stock market risk. On one hand, the Dow Jones Industrial Average eclipsed a new record last week when the blue chips…

We are entering the always intriguing fourth quarter, during which I expect to see some major surprises that could alter the current investment and political climates and increase the stock market risk. The Dow Jones Industrial Average and the S&P…

We are at the mid-point of the year, and so far it seems like a rollercoaster ride driven by heightened stock market risk. We had a stellar January, followed by some softness in February and March. April and May, followed…

The stock market risk is high right now. Maybe you should take a vacation from investing. As an investor, you should be aware that the six-month period from May to October has been historically the worst-performing months for stocks, according…

As we just completed the December meeting of the Federal Reserve, the continued market sell-off accelerated. This was following the previous week’s European Summit, which was supposed to alleviate concerns about the eurozone. Neither the Fed nor the summit in…

There was a stock market correction on Wednesday following a mini rally that drove some impressive upward gains in four of five sessions. I feel there is too much relaxation in the market, with traders ignoring the higher stock market…

October was one of the best months for the stock market in history in spite of the market risk. Everyone was buying and it didn’t matter if it was technology, industrial, or some new never-heard-before-technology. Everything went up, which is…

Things are looking up for the economy again. Unfortunately, things are not always as they seem. The U.S. Commerce Department said that the U.S. economy grew at 2.5% in the third quarter—the fastest pace in a year. Moody’s Investor Services…

Chinese stocks continue to be in the dumps compared to the rally in U.S. stocks. The benchmark Shanghai Composite Index (SCI) is firmly in the red this year, down 13.28%. However, the plus is that Chinese stocks are no longer…

Here’s how the story plays out… After a 25-year to 30-year leveraging period, as the credit crisis developed in 2008, a period of great deleveraging was born. Banks, which were once all too happy to lend money to people, some…

The upside potential is limited at this time. The problems are global in nature. You have the massive debt crisis in Europe and the U.S., along with deepening U.S. deficit situations. We are seeing state governments take days off here…

It’s time to rejoice; stocks have gained for two straight days! Of course, I’m kidding. The bounce has largely been due to technically oversold buying as traders try to determine whether gains are sustainable or if it is a “dead…

There is optimism on Wall Street, but be careful as there is also risk. You need to understand the concept of risk management as a key element to investing success. The reason why I want to discuss risk management is…

The S&P 500 Index has broken solidly below 1,200, and the trading action is the correction that the market’s required. I’d like the trading action to spread to commodities so investors could have another entry point. I think 1,150 seems…

Markets appear to be stalling at the chart tops and, based on a lack of catalyst, could be heading lower. Yes, there was the breakout at the chart tops and a bullish head and shoulder formation, but the lack of…